Program Management Oversight (Section 5327)

Section 5327(c)1 of the Federal Transit Act authorizes the Secretary of Transportation to use up to one-half percent of the appropriations for the capital, urbanized area formula, nonurbanized area formula; the Washington Metro and Title 23 (Interstate Transfer); and up to three-fourths percent of the capital program to contract with any person to oversee the construction of any major project under such section of the Act. The Project Management Oversight Program (PMOP) provides for the monitoring of a major capital project's process to determine whether a project is on time, within budget, in conformance with design criteria, constructed to approved plans and specifications, and is efficiently and effectively implemented.

Section 5327(c)3 also permits the use of such funds to include safety, procurement, management and financial compliance reviews and audits. In FY 2000, a total of $44,446,971 was obligated in the following categories: safety - $3,400,000; project management oversight - $26,614,784; financial – 5,322,336; and procurement/management/audit - $9,109,851.